Correlation Between General American and Sprott Physical
Can any of the company-specific risk be diversified away by investing in both General American and Sprott Physical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining General American and Sprott Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General American Investors and Sprott Physical Silver, you can compare the effects of market volatilities on General American and Sprott Physical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in General American with a short position of Sprott Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of General American and Sprott Physical.
Diversification Opportunities for General American and Sprott Physical
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between General and Sprott is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding General American Investors and Sprott Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Physical Silver and General American is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on General American Investors are associated (or correlated) with Sprott Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Physical Silver has no effect on the direction of General American i.e., General American and Sprott Physical go up and down completely randomly.
Pair Corralation between General American and Sprott Physical
Considering the 90-day investment horizon General American is expected to generate 50.83 times less return on investment than Sprott Physical. But when comparing it to its historical volatility, General American Investors is 1.99 times less risky than Sprott Physical. It trades about 0.01 of its potential returns per unit of risk. Sprott Physical Silver is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 966.00 in Sprott Physical Silver on December 28, 2024 and sell it today you would earn a total of 202.00 from holding Sprott Physical Silver or generate 20.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
General American Investors vs. Sprott Physical Silver
Performance |
Timeline |
General American Inv |
Sprott Physical Silver |
General American and Sprott Physical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with General American and Sprott Physical
The main advantage of trading using opposite General American and Sprott Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General American position performs unexpectedly, Sprott Physical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sprott Physical will offset losses from the drop in Sprott Physical's long position.General American vs. Blackrock Muniyield | General American vs. Allianzgi Equity Convertible | General American vs. MFS Investment Grade | General American vs. Eaton Vance National |
Sprott Physical vs. Sprott Physical Gold | Sprott Physical vs. Sprott Physical Platinum | Sprott Physical vs. Blue Owl Capital | Sprott Physical vs. Ares Management LP |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Transaction History View history of all your transactions and understand their impact on performance | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |